A hotel owned by the Royal College of Surgeons of Edinburgh (RCSEd) is to undergo a major expansion following record occupancy numbers.

Run by the college's commercial arm, Ten Hill Place will receive an £8.5m injection to expand from 77 to 129 rooms. Capacity of the restaurant and wine bar will also be increased, and a gym will be added.

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Profits generated by the hotel are invested by RCSEd into improving surgical standards for patients around the world, including those in areas of conflict and extreme poverty. In its last financial year, Ten Hill Place posted record turnover of £2.69m on the back of an 88 per cent occupancy rate.

“As the number of visitors to Edinburgh has soared, we have been able to tap into the market and develop our reputation – meaning that the hotel is now busy all year round,” said Scott Mitchell, commercial director of RCSEd.

RCSEd Commercial Enterprises – which started out as three people, and has grown to more than 140 – is rebranding to Surgeons Quarter to mark the expansion of the organisation. The full destination branding is expected to be complete by the summer of 2018 to coincide with the conclusion of work at the hotel.

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The commercial arm promotes, sells and manages all commercial activities held within the college campus, which includes arts and conference venue Surgeons' Hall. All profits support the charitable aims of the college which are education, assessment and advancement in surgery.

As part of the rebranding, the collection of buildings around the historic Hill Square will also become known as Surgeons Quarter.